The government of India created the Securities and Exchange Board of India (SEBI) with a view to control and regulate the foreign investment in the capital markets, new issues of capital brought out by the companies and grievances of the companies and the investors. In addition, SEBI has been created with the broader aim of protecting the interests of the investors in securities and promoting and regulating the securities markets in the country.
Based in Mumbai, SEBI has eight divisions and departments which look after several functions to achieve the above mentioned broad objective. The Depositors and Custodians Division looks after the work of registration of depository participants/custodians, as well as their renewal of registration or cancellation of registration. Foreign Institutional Investors Division, on the other hand, deals with registration/renewal of registration of such investors. FII Division looks after the FIPB proposals and the government correspondence connecting with this function.
While Collective Investment Schemes Division deals with registration and renewal of the registration for collective investment schemes, Secondary Market Department is the major department of SEBI which carries out the functions like registration and renewal of registration of the credit rating agencies in the country, in addition to the registration of the brokers and sub-brokers, registration under the Stock Lending Scheme and deposit of various fees by the brokers and refund of fees to them.
With a view to protect the interests of the investors, Investors Grievances and Guidance Division has been set up which carries out the registration of the Investors’ Associations, looks into the grievances of such associations and other investors and carries out the tasks of guiding the investors through the registered Associations or otherwise.
Mutual Fund and Venture Capital Division of the SEBI looks into the tasks like registration of trustees for Mutual Funds, processes the applications for foreign securities, ADRs/GDRs, allow changes from closed ended to open ended schemes, observations on offer documents etc. Primary Market Department is also an important department of SEBI and deals with the matters like fresh registration/cancellation of intermediaries, observations on the offer documents and list-related matters pertaining to the new issues.
The complete control and regulation by the SEBI has enhanced the confidence of the general public in the securities market of the country.